Oil cos in red sea of losses

MUMBAI, JANUARY 30: State-owned blue chip oil companies are deep in the red. With crude oil prices remaining high and companies reporting under-recovery of prices, both Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) have made a loss of Rs 1,000 crore each for the third quarter-ended December 2005.

..‘‘If oil companies continue to perform like this, their valuation will be affected. Their networth will also be eroded,’’ said an analyst tracking the oil sector. The government has barred fuel retailing firms from raising prices in line with increases in crude oil costs. This has led to the losses in the oil sector.

Indian Express